denotes premium content | Jan 6 2009 Trade & Forfaiting Review magazine archive
Volume 6 Issue 6
Editor's foreword
As regular readers are sure to have noticed, there is a new face on the editor’s page. Formerly deputy editor, I take over from my colleague Layisha Laypang, who now heads Trade & Forfaiting Review’s sister publication Risk Transfer. Lucky for us, however, Layisha will remain involved with TFR as managing editor.
You might also notice a slightly revamped page design this month; we hope you like it.
In this issue, on the heels of Trade & Forfaiting Review's two recent Sub-Saharan Africa Trade conferences (in Johannesburg and London), we examine the current state of the trade-finance business there, as well as the region's prospects for development.
In a roundtable discussion, members of Standard Bank’s Africa finance team, John O’Mulloy, David Rhodes, Seorus Simpson and Heloise Smith, speak candidly about the bank’s experiences, good and bad, in Sub-Saharan Africa. And their colleague in Johannesburg, Andre Strydom, discusses the exciting trade-finance opportunities emerging in South Africa, which has far outpaced most of its neighbours in economic development.
Also, Frida Youssef and Lamon Rutten of the United Nations Conference on Trade and Development make a case for financing African horticulture, one of the region’s successful export sectors.
Last month, we broke the news of Margrith Lutschg-Emmenegger’s resignation from WestLB and published her first post-WestLB interview. This month we speak to her successor, Geoff Sharp, about his plans for the bank’s forfaiting unit.
Meanwhile, the subject of our personal profile is new chairman of the International Chamber of Commerce, Jean-Rene Fourtou, who made headlines last summer when he was named chairman and CEO of Vivendi Universal.
On the legal front, Nicholas Budd of Denton Wilde Sapte provides a detailed guide to the Basel Capital Accord’s treatment of security structuring and collateral management in commodity-financing transactions. As always, your input is very important to us, so please don’t hesitate to contact us with your views, news and story ideas. I look forward to meeting as many of our readers as possible in the days ahead.
Courtney Fingar is editor of Trade & Forfaiting Review.
Features
Back to the future
There has been no shortage of grandiose predictions about the future of B2B e-commerce and the move from paper to e-trade. But Kim Christensen argues that predictions about e-commerce are meaningless unless all parties in international-trade transactions are willing to make them come true.
From trends to trades
The international-trade industry is learning how to take yesterday’s trends and turn them into viable solutions for today, writes John Galioto. But in order for banks to best benefit from trade-services trends, they must develop business plans that are both solid and flexible enough to accommodate a range of different solutions.
If you think the L/C is dead, think again
The letter of credit’s obituary has been written many times before, but despite shortcomings, it survives. David Gustin explains why.
Basel II
The latest draft of the Basel Capital Accord is very specific in its treatment of security structuring and collateral management in commodity-financing transactions. Nicholas Budd examines the impact of Basel II on banks involved in cross-border commodity-financing transactions.
What's the purpose?
CR Sugar-v-CNSA was the first case to consider whether a commodity forward contract is for investment or commercial purposes. Clare Hatcher writes that the fate of CR Sugar illustrates the devastating consequences of getting it wrong.
The case for African horticulture
Horticulture is one of Africa’s successful export sectors. With the right skills and contacts, financiers can add value to ongoing export transactions and become partners in this profitable and fast-growing industry. Frida Youssef and Lamon Rutten discuss the difficulties of horticultural finance and the structures and risk-mitigation techniques that have been successful in Africa.
Ahead of the pack
South Africa is moving forward, and trade-finance banks would do well to run with it. Andre Strydom weighs in on Sub-Saharan Africa’s economic leader.
Banking on Africa's potential
Trade & Forfaiting Review recently held a roundtable discussion with members of Standard Bank’s Africa finance team. John O’Mulloy, David Rhodes, Seorus Simpson and Heloise Smith spoke about the challenges and opportunities Sub-Saharan Africa presents and why, for better or worse, the bank remains committed to the region. Courtney Fingar reports
The lost continent?
The west has thrown both aid and trade at Sub-Saharan Africa in an effort to save it from itself – with largely disappointing results. While all hope is not lost, achieving noticeable progress in developing the region will require time, money and perhaps nothing short of a miracle.
Talking it through
Such is the growing importance of Africa to the trade-finance community that on the heels of a successful Sub-Saharan Africa Trade conference in Johannesburg in January, Trade & Forfaiting Review convened another one in London. Dougal Thomson provides a recap for those who missed it.
Regulars
Indicative forfaiting rates
The analysis from Standard Bank London
Latin America outperforms other segments
Fourtou's new focus
The activities, initiatives and rulings of the International Chamber of Commerce affect many aspects of the trade-finance business. With that in mind, Courtney Fingar asked the group’s high-profile new chairman, Jean-Rene Fourtou, why he wanted the job and what he plans to accomplish during his two-year term.
Looking Sharp
In the wake of Margrith Lütschg-Emmenegger’s resignation from WestLB, questions abound about the future direction of the bank’s forfaiting unit. Her successor, Geoff Sharp, says his team is carrying on with business and getting back to basics. Courtney Fingar sat down for a chat with the new head of forfaiting.
